additional bonds test

(redirected from Additional Bonds Tests)

Additional bonds test

A test for ensuring that bond issuers can meet the debt service requirements of issuing any new additional bonds.

Additional Bonds Test

A financial statement that a company must issue before making a new issue of a bond. The additional bonds test shows what assets the potential issuer has available to pay coupons on the bond. It helps ensure the issuer is able to service debt on the new issue. The additional bonds test increases the transparency of the market and helps one accurately gauge the risk of the new bond issue.

additional bonds test

A financial standard that must be met before issuing bonds that use as security revenues or assets already pledged for outstanding bonds.
References in periodicals archive ?
Interest earnings on various funds provide the cushion to absorb revenue volatility and meet the additional bonds tests, the key legal protection to bondholders.
The senior lien additional bonds test requires a minimum of 1.
Fitch Rates South Carolina Transportation Infrastructure Bank Rev Bonds 'A'
Senior lien bonds are rated 'AA' with a strong 3x additional bonds tests.
Fitch Rates Oregon DOT's $100.3MM Highway Sub Lien Revs 'AA-/F1+'
Legal protections are satisfactory for both series, based on the additional bonds tests of 1.
Fitch Rates Redding RDA, California's 2003A TABs 'A-', 2003 TABs 'BBB+'
Additional bonds tests require net revenues to cover maximum debt service of proposed and outstanding bonds 1.
Fitch Rates Milwaukee, WI's $33.9MM Sewerage System Rev Bonds 'AA'
2x debt service coverage, consistent with current bond bank practice, although additional bonds tests allow leveraging down to the 1.
Fitch IBCA Upgrades Oregon Bond Bank To `AA'
Legal provisions that include additional bonds tests of 5.
S&P Rates New Mexico St Hwy Comm Revs; Outlook Stable
Financial browser ?
Full browser ?